[Federal Register Volume 78, Number 248 (Thursday, December 26, 2013)]
[Notices]
[Pages 78470-78472]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30898]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
[FMCSA-2013-0514]
Registration and Financial Security Requirements for Freight
Forwarders; International Association of Movers Exemption Application
AGENCY: Federal Motor Carrier Safety Administration (FMCSA).
ACTION: Notice of application for exemption; request for public
comments.
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SUMMARY: FMCSA announces that it has received an application from the
International Association of Movers (IAM) for an exemption for all
domestic freight forwarders which operate solely in the Department of
Defense's (DOD) household goods (HHG) program from the $75,000 bond
requirement at 49 CFR 387.403(c). FMCSA promulgated this requirement
pursuant to Section 32918 of the Moving Ahead for Progress in the 21st
Century Act (MAP-21), now codified at 49 U.S.C. 13906. On September 5,
2013, FMCSA published guidance in the Federal Register concerning
section 32918, and on October 1, 2013, the Agency published a final
rule amending 49 CFR part 387 to set a minimum $75,000 surety bond/
trust fund requirement for brokers of property and freight forwarders.
FMCSA requests comments from all interested parties on IAM's exemption
request.
DATES: Comments must be received on or before January 27, 2014.
ADDRESSES: You may submit comments, identified by docket number FMCSA-
2013-0514, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Fax: 1-202-493-2251.
Mail: Docket Management Facility (M-30), U.S. Department
of Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590-0001.
Hand delivery: Same as mail address above, between 9 a.m.
and 5 p.m. ET, Monday through Friday, except Federal holidays. The
telephone number is 202-366-9329.
To avoid duplication, please use only one of these four methods.
FOR FURTHER INFORMATION CONTACT: Mr. Thomas Yager, Chief of Driver and
Carrier Operations, (202) 366-4001 or thomas.yager@dot.gov, FMCSA,
Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC
20590.
[[Page 78471]]
Public Participation and Request for Comments
FMCSA encourages you to participate in this proceeding by
submitting comments, data, and related materials. All comments received
will be posted without change to http://www.regulations.gov and will
include any personal and/or copyrighted information you provide.
Submitting Comments
If you submit a comment, please include the docket number for this
proceeding (FMCSA-2013-0514), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and material
online or by fax, mail, or hand delivery, but please use only one of
these means. FMCSA recommends that you include your name and a mailing
address, an email address, or a phone number in the body of your
document so that FMCSA can contact you if there are questions regarding
your submission. However, see the Privacy Act section below regarding
availability of this information to the public.
To submit your comment online, go to http://www.regulations.gov and
click on the ``Submit a Comment'' box, which will then become
highlighted in blue. In the ``Document Type'' drop down menu, select
``Rules,'' insert ``FMCSA-2013-0514'' in the ``Keyword'' box, and click
``Search.'' When the new screen appears, click on ``Submit a Comment''
in the ``Actions'' column. If you submit your comments by mail or hand
delivery, submit them in an unbound format, no larger than 8\1/2\ by 11
inches, suitable for copying and electronic filing. If you submit
comments by mail and would like to know that they reached the facility,
please enclose a stamped, self-addressed postcard or envelope.
FMCSA will consider all comments and material received during the
comment period.
Viewing Comments and Documents
All public comments are available in the public docket. To view
comments filed in this docket, go to http://www.regulations.gov and
click on the ``Read Comments'' box in the upper right hand side of the
screen. Then, in the ``Keyword'' box, insert ``FMCSA-2013-0514'' and
click ``Search.'' Next, click the ``Open Docket Folder'' in the
``Actions'' column. Finally, in the ``Title'' column, click on the
document you would like to review. If you do not have access to the
Internet, you may view the docket online by visiting the Docket
Management Facility in Room W12-140 on the ground floor of the
Department of Transportation West Building, 1200 New Jersey Avenue SE.,
Washington, DC 20590, between 9 a.m. and 5 p.m. ET, Monday through
Friday, except Federal holidays.
Privacy Act
Anyone is able to search the electronic docket for all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review the DOT
Privacy Act system of records notice for the Federal Docket Management
System (FDMS) that DOT published in the Federal Register on January 17,
2008 (73 FR 3316).
SUPPLEMENTARY INFORMATION:
Legal Basis
Section 13541 of title 49 of the United States Code (49 U.S.C.
13541) requires the Secretary of Transportation (Secretary) to exempt a
person, class of persons, or a transaction or service from the
application, in whole or in part, of a provision of 49 U.S.C. Part B
(Chapters 131-149), or to use the exemption authority to modify the
application of a provision of 49 U.S.C. Part B (Chapters 131-149) as it
applies to such person, class, transaction, or service when the
Secretary finds that the application of the provision:
Is not necessary to carry out the transportation policy of
49 U.S.C. 13101
Is not needed to protect shippers from the abuse of market
power or that the transaction or service is of limited scope; and
Is in the public interest.
Further, the exemption authority provided by section 13541 ``may
not be used to relieve a person from the application of, and compliance
with, any law, rule, regulation, standard, or order pertaining to cargo
loss and damage [or] insurance . . ..'' 49 U.S.C. 13541(e)(1).
IAM seeks an exemption, on behalf of all domestic freight
forwarders operating solely in the DOD's HHG program, from the $75,000
financial security requirements at 49 CFR 387.403(c). Section
387.403(c)'s $75,000 surety bond/trust fund requirement is promulgated
pursuant to Section 32918 of MAP-21 (codified at 49 U.S.C. 13906).
Section 13906 is located in 49 U.S.C. Title 49 Part B (chapter 139) and
therefore may be considered within the general scope of the exemption
authority of section 13541. The Secretary may begin a section 13541
exemption proceeding on the Secretary's own initiative or on the
application of an interested party. 49 U.S.C. 13541(b). See, e.g.,
Motor Carrier Financial Information Reporting Requirements-Request for
Public Comments, 68 FR 48987 (Aug. 15, 2003). The Secretary may
``specify the period of time during which an exemption'' is effective
and may revoke the exemption ``to the extent specified, on finding that
application of a provision of [49 U.S.C. Chapters 131-149] to the
person, class, or transportation is necessary to carry out the
transportation policy of [49 U.S.C.] section 13101.'' 49 U.S.C.
13541(c), (d).
The Administrator of FMCSA has been delegated authority under 49
CFR 1.87 to carry out the functions vested in the Secretary by 49
U.S.C. 13541.
Background
On July 6, 2012, the President signed MAP-21 into law, which
included a number of mandatory, non-discretionary changes to FMCSA
programs. Some of these changes amended the financial security
requirements applicable to property brokers and freight forwarders
operating under FMCSA's jurisdiction. Public Law 112-141, Sec. 32918,
126 Stat. 405 (codified at 49 U.S.C. 13906(b) & (c)).
On September 5, 2013, FMCSA published guidance (78 FR 54720)
``concerning the implementation of certain provisions of . . . (MAP-21)
concerning persons acting as a broker or a freight forwarder.'' On
October 1, 2013, FMCSA issued regulations requiring brokers and freight
forwarders to have a $75,000 surety bond or trust fund in effect. 49
CFR 387.307(a), 387.403(c). 78 FR 60226, 60233.
IAM Exemption Application
In a November 25, 2013 email to FMCSA's Office of Chief Counsel,
IAM requested, on behalf of domestic freight forwarders operating
solely under the DOD's HHG program, an exemption from the requirement
that freight forwarders obtain a $75,000 bond. IAM's exemption request
is included in this docket.
IAM indicated that transportation service providers in the DOD's
HHG program must maintain motor carrier or freight forwarder authority
from FMCSA. And, because freight forwarders must obtain the $75,000
bond as a result of FMCSA's requirements, the DOD requires freight
forwarders in their HHG program to obtain the requisite $75,000 bond or
face losing their approval to continue operating in the DOD program.
[[Page 78472]]
IAM argues that the new bond requirement is ``geared toward
commercial consumer protection'' and therefore it is unnecessary to
require freight forwarders in the DOD HHG program to obtain a $75,000
bond. It believes that the bond is an additional cost of doing business
that is being mandated by FMCSA and that this cost is being passed on
to DOD with no benefit to the DOD. IAM explains that DOD freight
forwarders will be forced to add this cost to the rates they provide
DOD.
IAM argues there is a precedent for providing an exemption for
transportation service providers for the DOD. It cites the Federal
Maritime Commission (FMC) regulation at 46 CFR 515.4(e), exempting
entities exclusively involved in the movement of Federal military and
civilian household goods from certain FMC licensing requirements.
Institution of Proceeding and Request for Comments
Pursuant to 49 U.S.C. 13541(b), FMCSA is instituting a proceeding
to consider whether domestic freight forwarders operating solely within
the DOD HHG program should be exempt from the new $75,000 financial
security requirements at 49 U.S.C. 13906(c) and 49 CFR 387.403(c).
FMCSA requests public comment, and comment from DOD and FMC, on the IAM
exemption application. Specifically, FMCSA requests comments on whether
the Agency should grant or deny the application, in whole or in part.
The Agency also requests comments on how it should apply 49 U.S.C.
13541(a)(1-3) to IAM's request. Additionally, FMCSA seeks comment on
whether section 13541(e)(1)'s reference to ``cargo loss and damage''
and/or ``insurance'' bars FMCSA from granting the requested exemption
as a matter of law and without application of the 3-part statutory test
under section 13541(a). Commenters are encouraged to provide data or
information concerning the impact of the new bond requirements and/or
the impact of granting this exemption request on carriers, brokers,
freight forwarders and shippers.
Issued on: December 18, 2013.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2013-30898 Filed 12-24-13; 8:45 am]
BILLING CODE 4910-EX-P